Chinese steel producer Wuhan Iron and Steel Company (WISCO) has this week launched asset transfer procedures in the context of its acquisition of a stake in an iron ore deposit in the West African country of Liberia.
On March 12 this year, Hubei Province-based Chinese steelmaker Wuhan Iron and Steel Co. Ltd (WISCO) signed an agreement to pay China-Africa Development Fund Co. a total of $68.46 million for a controlling 60 percent stake in China-Union Investment Co., a company which owns an iron ore deposit located in Bong county in central Liberia.
The deposit in question has proven reserves of 1.31 billion mt of iron ore (35.48 percent Fe) and potential reserves of 2.785 billion mt, and is connected to the ports via an 80-kilometer railway.
Before the agreement in question, the China-Africa Development Fund Co. held an 85 percent stake in China-Union Investment Co.
In late May, China's National Development and Reform Commission gave its approval for this overseas acquisition by WISCO.